tv Press Here NBC September 2, 2012 9:00am-9:30am PDT
the foreman in silicon valley's trial of the century takes us inside the jury room. tech shop ceo breaks down the maker movement and video advertising made just for you. our reporters from forbes and mike cray of investors business daily this week on "press: here." >> good morning. i'm scott mcgrew. the chances are pretty solid that someone watching now is named amy. i would like to say i'm glad you are watching and i hope you have a very good day. if you are named amy that felt pretty good. >> thanks for choosing at&t,
amy. >> at&t now sends out a video which walks you through your bill using your name, amy, or bill for that matter. whatever your name is it is personalized. the numbers, too. this is amy's actual bill with her specific details. >> this is your totalal amount. >> it is technology developed by a company called sunday sky creating tailor made videos. say you browse office depot looking at printers and never buy one. the next time you log on youtube the adtervisement might be for the printer you were thinking about buying. tim is the president of sunday sky joined my mike cray of investors business daily and eric sabbath of forbes. there will be a day when we look back and laugh at how quaint it
was that we were amazed that you can send out videos that are personalized to people's names and what they need and want. there will become a date fairly soon where i would imagine it is standard procedure. >> that is the basis of the company is that we believe every engagement with the customer should be personalized. the fact we can create videos personalized in real time is more engaging. >> do you have proof of that? i know if you use my name i will pay more attention. >> when we look at a program we set a control group up where we give a certain set of customers an experience without the video and a group with the video and measure key metrics about the rates and things that allow us to evaluate how effective the video is in driving an action that the company is trying to
deliver. >> are you doing this with bills or what are the other cases for doing this? >> there are customers using this as part of a boarding experience for a customer. if you acquire a customer and want to explain the status of the purchase and when the product is being shipped. we have where clients are trying to get customers to renew plans and with customers trying to advertise. we are delivering a video that is driving a sales engagement by bringing a visitor back to a website. >> you talk about the balance between information and entertainment. there is the uphillbalance, too. we are talking about this thing. is that the key part of the whole thing? >> there are a couple of ways the companies look at success. one is, can they cake costs out
of customer service? can they acquire new customers. can they retain customers that they already have a higher rate? can they deliver an experience that is measurable. >> you deliver this experience on the fly. the amy is inserted or the numbers or in the case of the printers offering me 20% off of a printer i just looked at and the narrator would change as office depot saw fit. >> the videos are personalized to the individual if you have data about their experience with you or personalized to their behavior if they are on a website browser and leave. our software knows what you looked at. when you go to a website to look at a video like youtube we show you an ad. >> this is the part that bothers me. i would worry. let's take your scenario.
i go on a retailers' website and i surf over to youtube and i see an ad for a printer i'm looking at. it feels to me like you are going to get pushback with privacy concerns. why do you have that information? why is that information shared? >> i'm not sure that it is in a way that it is personalized information -- >> are you getting any pushback? >> the idea of doing retargeted advertising already exists and has been done for years and there are companies that have built large businesses doing that. the experience is not new or unique. we don't feel like we are trying to blaze new ground in that area. making the video ad personalized is areas where we think we are blazing new ads where the ad is your ad for you. i guess the question we ask people when they talk about
those concerns is would you rather see an ad for ad automobile that you have no desire to buy or an ad for a printer that you are considering to buy -- >> and with 25% off. >> most people would rather have a personalized ad than a generic ad. >> people getting inundated with ads in general. one thing i noticed on your marketing material is you said every person who looked at this video, 5% wound up making a purchase. my question is -- which is a lot. it is a lot if you get a lot of people to watch. so is part of what you bring to the table is getting your people to watch? >> that's part of it. there are ways that you can put the video placement on a website that gives higher click throughs. above the picture, upper left is better than a link below the
picture lower right. we also have customers that have sending the videos out to their end customers via e-mail or sms. and we have the ability to insert the ads where we are placing the ads in front of people. >> we have about a minute left here. >> when you send the e-mails with embedded video in them, what kind of clicks is there? >> the click rate is higher than traditional e-mail click rates. the call to action rate is higher than the call to action rate of general e-mail. on a relative basis we are driving open rate, click through rate and call to action rate at higher levels. >> president of sunday sky. we appreciate you being with us here this morning. >> thanks for having me. meet the foreman of the jury who gave apple reasons to celebrate. "press: here" will be back in a minute.
welcome back to "press: here." lots of people have talked in the past week about the impact of the apple samsung trial debating what it means for the future of the smart phone and if the jury made the right decision. speaking of the guy who attended nearly every day of testimony and sat through more than 100 pages of jury instruction the most interesting thing to me was the fact that nine jurors picked at random from the community could tackle an issue that divides even the experts especially considering the matter at hand was opaque and at times down right boring. bell hogan served as jury foreman at the trial. there was one point in which judge lucy co had you guys stand
up and shake around like a class because she said i need you people to stay conscious. she was being serious because 100 pages of jury instruction was tough stuff. >> right. what the average person who is seeing all the hype in the media doesn't realize, what you realize is that we did hear that. that was before the closing arguments were allowed to be given. she read that to us and then gave us copies of it. >> i recall a reporter saying you didn't read it. you were read all the instructions. my point is that i was paid to be there. it is my job. there were times in which i could barely keep my eyes open. you were on the jury. it is your responsibility to keep your eyes open and you did. and you were vigilant. >> here is the difference. i'm an electrical engineer and i
entered the hard drive industry when i leftthal navy in 1969. i became an engineer and came back to school a couple of years after i entered the industry. and i grew up with it. back in those days -- >> you had an interest in it. >> i was very surprised to be on the jury. i expected to be dismissed because i have two patents and one that is pending. and i have the tech experience. >> you did have the tech experience but the other eight jurors, most of them didn't. i was curious when you left after you got the instructions and left, did you in the back of your mind think it is going to be two or three weeks? >> i thought it might until i became completely aware that there were two other jurors that have tech experience, different arenas. not the length of time that i did, neither of which have patents. each brought to the table their own experience. and what we did is once i
finally was elected or we decided who was going to be foreman and i initially hadn't wanted to be foreman, i was unanimously voted in. he was sitting beside me. i said you and i are going to facilitate this together. >> one thing that i think is interesting is you had a lot of individual decisions to make. there were many, many individual parts of the ruling on does this violate this patent or can make hundreds of decisions. so it feels proper that you deliberated as relatively short a period of time as it was to make all those decisions. >> what i believe isn't obvious
to everyone out there, even those that have seen even the jury was that there was the 20/60 vices. everyone talks about 700 questions. there was really on 33 questions. there was a matrix already where she had all of the accused divisions of samsung. and she combined i think it was in one case three patents. not every device breached each patent. and she had grouped them accordingly. on the form i know you saw the form probably. you saw portions blacked out. nothing had to be filled in there. and so the first thing we -- that by itself would have made it easy. she grouped the first nine questions together. >> by she you mean the judge. >> i'm sorry.
the way she grouped those together was not everything had to be answered. the first nine questions were grouped together. the way you answered those questions determined by law how you had to answer the next two. they were connected. in order to precede at a smooth rate and i'm not saying that we really did. i mean, everybody sitting out there thinking how this is going thought it was smooth but it wasn't smooth. before you get started you as a jury have to determine since the first question is due to the amount of evidence do you believe that x, y, z infringed on these patents? first thing you need to do is determine if the patents are valid. it is valid against prior art. when a patent is actually issued, when the patents office starts their process as i found out with my attorney you go
through a period of time, in my case it was 3 1/2 years where it is back and forth. you have to substanchwit your claim. so same things with this case. >> i hear where you are going with this. let me ask the next question. if you aren't there, if it weren't an electrical engineer with a patent running the jury, if this jury was in kansas city which is not a tech community, would it have been more hopeless? is the jury the right place to be deciding these cases? >> i believe so. i believe a jury of our peers could make this decision. the difference is if you have tech people in there who can explain some of the procedures that the other people don't know and can understand legal jargon
so you are not confused by the way the patent is written or the judge's instructions for that matter, you can get through it faster. if you don't have any of those you will get to the example. it won't be in the three days or two. it was actually three and three quarter days. >> the foreman at the apple samsung jury. we appreciate you sitting down in the chair one more time. >> no problem. up next the coolest place to be in silicon valley isn't a bar. it is a work shop. the future starts here inside tech shop when "press: here" continues.
as old as it is new, straight out of the 50s, a new generation using tools, fixing their own cars, inventing and building things. it's been called the maker movement and it has inspired a magazine and a fair and a business called tech shop where anyone can use state of the art industrial tools whenever and however they wish. think of it as a gym membership except with $100,000 milling machines instead of treadmills. tools all for you to use any way you see fit. here a wooden router run by computers creates a guitar. the clientele can range from artist to engineers perfecting
state of the art prototypes. mark hatch is ceo of tech shop which has three locations here in the san francisco area and will soon open a location in new york city. he is, by the way, a former green beret. i have gone into these tech shops and look at this machinery and thought, how are you guys making money. you are a for profit organization. >> if you can figure out how to make profit doing this you can use capital markets to put one in every city of the u.s. >> i know how the gym makes money by people not showing up. >> we're not interesting in that. >> what is the magic membership number? >> we are at about 800 members. >> what is the cost to be a member? >> about $125 a month, i would like to say the cost of a starbucks addiction gives you
access to the tools of the industrial revolution. >> i can go into the shop and use anything. >> you can take a class. you have to become a member and take a class. you only take the classes that you need. they are typically 90 minutes. you take $100 on how to use a mill and you get to come in the next day and use a mill. >> there is a marvelous feeling that once you have gotten the safety briefing nobody is going to tell you what you can and can't do. i'm here to make whatever it is i see fit. and i don't know the world changed sometime where all of a sudden there were so many rules. now i can make a laser canon death ray if i want. >> the key is capital economics for machine tools were so high the only places to get them were in places that would tell you what you were going to do on those machines, large institutions, governments, educational institutions and
companies. and imagine you are an electrical engineer and every day at 5:00 p.m. the tools you have been trying to learn how to use have been taken away from you and put in a closet. you are told togo home and drink a beer and watch television. those days are over. now an engineer can use the tools. >> does it tend to be hobbiests or people doing start-up projects? >> it ask all over the map. we have learned that most americans actually like to make things. there was a research study done that chose 64% of americans like to make things. hobbiests, entrepreneurs, artists, tinkerers, students, a research science from nasa working on a satellite next to an artist who just graduated. >> are you creating a place for
it can be their main work place. >> we have three consultants that will help you do the design work. >> what would stop someone from just hiring 100 employees and paying 125 times 100 and taking the place over or would that not be a problem for you? >> that would be difficult. we have a fully integrated safety network you would have to develop. >> if somebody said free tools, somebody will always gain the system. i'm wondering if this is the way to gain it. your factory, my workers. >> we limit the number of hours you can have access to a particular machine. you can't go into full production run. we do help companies launch. i have a sample here. this is a dodocase. it is an ipad case. he came in and asked what classes do i need to take to
learn how to make an ipad case out of bamboo. >> these are sold wildly. >> within 90 days he sold a million dollars worth of product. >> what did he do before? >> he was a software guy. >> how many classes did he have to take? >> he took about three classes. he had the production prototypes. he did the first 3,000 units on site. >> is there a market for these? >> every major city. >> why aren't they there now? >> it is early in the maker movement. there is nobody else that has built the systems that we have. we opened in dear born. ge is helping us in pittsburgh. university of arizona is helping us in phoenix.
we are opening in austin and other places. >> two obvious issues, the safety issue and breakage. you have expensive machinery and people who are amateurs using this stuff. >> it is about 1% of our operating cost. our staff members -- my biggest problem is keeping them from messing with the equipment. when it comes off warranty we have staff to take care of it. >> back to the safety question. we had tully on about a year ago. he wrote a book, "50 dangerous things to do with your children." one of them was boiling water in a paper cup. there was discussion as to whether we should discuss that because of the safety issue.
there are welders and saws and legitimate safety issues. we have gotten to the point where it is the helicopter mom. >> we are afraid. fear, uncertainty and dread is driving this. we have had in the last five years five reportable injuries. one was like six stitches on a finger. here is what i like to say. president obama has had more stitches on his face in the last years than we have had in all of the tech shops. there is safety protocol. there is training. you have to be at a machine that has a green light showing you are authorized to use that particular machine. there is the culture of safety. there is the culture of safety and machines that tend to be safer. we created this badging so we know when we scan the room that everybody in that room is qualified on that particular machine. >> i saw a demo that you did a
few years ago. what was interesting to me in part was huge numbers of people that were doing demonstrations on how to make various tools. a lot of the people riding around were kids. so there is safety issues. it also seems like a huge opportunity to foster that love of design. >> absolutely. so we did a popup by southwest with ge. a 14-year-old girl came in and spent four hours on site and learned how to weld and the next day said you guys have changed my life. i'm going to be an engineer. >> that is more than a lot of efforts have done is that direct. >> direct hands on is different than equations on a chalk board. >> thank you for being here. >> thank you. >> "press: here" will be back in just a minute.